5 dumb ways you are wasting money
Have you ever sat down for a minute and think of all the things you could do with the money you waste that would otherwise make life better for someone else? If you haven’t, then think of what you could do with the money that would make your life better in future.
When you will grow older, your future self might very well wish he or she had more money in the bank.
If you are not convinced yet to reconsider your ways, think of how hard you worked to earn that money, and ‘then picture yourself doing that work for free because what you are essentially doing is throwing hours’ or weeks’ worth of salary right into the trash,’ reported the Time.
Just imagine you are putting cash money into a trash bag, and watching it being driven off down the street in a garbage truck. This is insane, isn’t it?
Those, however, have not yet realise how much money you are actually wasting, here’s five signs you need to curb your spending before you send more cash to the dump — you might not agree with what the Time has said:
You buy new stuff just because it’s new
You are the guy in line at 2am on the day the new iPhone is being released. But, there is always going to be a new iPhone coming out. Commerce is what makes the world go ‘round. If companies stopped creating new versions of things to sell, they’d go out of business. However, it does not mean you have to buy into the super-hype and rush to get everything the minute it hits the shelf.
It is not just electronics. The new car smell is still hanging in the air and you are at the dealership again looking at next year’s models? Cars depreciate 11% the minute you drive them off the lot, and lose 19% of their value in the first year. You do not get your money’s worth out of a car until you have driven for a while.
You sale shop for things you don’t need
You are right out there at a sale — whatever it is — among the rest of them. Fighting your way through the crowds — real or virtual — to get your hands on stuff you never knew you wanted. You hate to miss one of your local department or computer store’s special sales (nearly every weekend), and you never pass up two-for-one coupons for things you do not even need one of. ‘But look how much I’m saving!’ you say. But look how much you’re saving if you keep your wallet in your pocket.
What’s that you say? You only shop at discount stores, dollar stores, and places with Barn, Depot or Warehouse in their names? Look how much I’m saving! Yep, you’re saving what it would have cost if you had bought the same things at high-end establishments. But if you do not need them, then you are not saving a cent no matter what you paid for them. Plus you have got to figure out where to put everything when you get it home. You want to wind up living like someone on Hoarders?
You pay fees to use a credit card or checking account
You are handing over money to a credit card company so that you can pay interest on the money you owe them? There are a few exceptions when the program rewards will more than pay the fee, but generally, paying an annual credit card fee is dumb. There are plenty of credit cards with no annual fee. Get one.
The same applies to having accounts at a bank that charges a monthly checking account fee or a fee to visit a teller instead of an ATM. Do some research and find a bank that will accommodate you with no fees for a minimum deposit you can live with.
You don’t use loyalty cards at the stores you shop at regularly
Rail as you might at the insidiousness of grocery and other stores that extract personal information from you and track your purchases in exchange for giving you discounts, if you regularly shop at a store that offers special pricing to customers in its loyalty program and you don’t take advantage of it, you’re over-spending at that store by 20% or more every time you shop there. Unless you’re in a witness protection programme, it is absolutely worth the savings to give your local supermarket your address and phone number and let them keep tabs on the brand of butter you buy.
You eat out more often than you eat at home
If your breakfast comes in a Styrofoam container, your lunch is delivered in a plastic box, and you are choosing dinner from a menu, you are spending way more than you have to. You can’t help it if you’re on the road, but otherwise, you can eat as well or better at home for a lot less money, even if you barely cook at all. Tax and tip alone add about 25% to the price you’d pay if you bought the food yourself and just nuked it. If you actually know how to cook, there’s sort of no excuse.